Privatization of Anatolia National Telekom: ANT Confidential Instructions SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Privatization of Anatolia National Telekom: ANT Confidential Instructions
Anatolia National Telekom is a multiparty negotiation simulation patterned after the Turkish government's aborted attempt to privatize its state-owned telecommunications monopoly, Turk Telekom, in late 1997. Provides participants with an opportunity to identify and negotiate complex issues related to the valuation and sale of a state-owned enterprise in an emerging market. Members of each negotiating team are valuing a 20% equity stake being offered by three "selling" teams to three prospective "buying" teams representing different types of foreign investors.
Authors :: Michael D. Watkins, Banu Ozcan, Burkhard Schrage, Paul Vaaler
Swot Analysis of "Privatization of Anatolia National Telekom: ANT Confidential Instructions" written by Michael D. Watkins, Banu Ozcan, Burkhard Schrage, Paul Vaaler includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Telekom Anatolia facing as an external strategic factors. Some of the topics covered in Privatization of Anatolia National Telekom: ANT Confidential Instructions case study are - Strategic Management Strategies, Economy, Emerging markets, Financial analysis, Government, Negotiations and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Privatization of Anatolia National Telekom: ANT Confidential Instructions casestudy better are - – increasing government debt because of Covid-19 spendings, challanges to central banks by blockchain based private currencies, wage bills are increasing, cloud computing is disrupting traditional business models, increasing household debt because of falling income levels, supply chains are disrupted by pandemic , increasing transportation and logistics costs,
technology disruption, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Privatization of Anatolia National Telekom: ANT Confidential Instructions
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Privatization of Anatolia National Telekom: ANT Confidential Instructions case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Telekom Anatolia, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Telekom Anatolia operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Privatization of Anatolia National Telekom: ANT Confidential Instructions can be done for the following purposes –
1. Strategic planning using facts provided in Privatization of Anatolia National Telekom: ANT Confidential Instructions case study
2. Improving business portfolio management of Telekom Anatolia
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Telekom Anatolia
Strengths Privatization of Anatolia National Telekom: ANT Confidential Instructions | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Telekom Anatolia in Privatization of Anatolia National Telekom: ANT Confidential Instructions Harvard Business Review case study are -
Ability to lead change in Strategy & Execution field
– Telekom Anatolia is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Telekom Anatolia in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High brand equity
– Telekom Anatolia has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Telekom Anatolia to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Telekom Anatolia has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Telekom Anatolia has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Diverse revenue streams
– Telekom Anatolia is present in almost all the verticals within the industry. This has provided firm in Privatization of Anatolia National Telekom: ANT Confidential Instructions case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Operational resilience
– The operational resilience strategy in the Privatization of Anatolia National Telekom: ANT Confidential Instructions Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Training and development
– Telekom Anatolia has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Privatization of Anatolia National Telekom: ANT Confidential Instructions Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Ability to recruit top talent
– Telekom Anatolia is one of the leading recruiters in the industry. Managers in the Privatization of Anatolia National Telekom: ANT Confidential Instructions are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Effective Research and Development (R&D)
– Telekom Anatolia has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Privatization of Anatolia National Telekom: ANT Confidential Instructions - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Cross disciplinary teams
– Horizontal connected teams at the Telekom Anatolia are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Low bargaining power of suppliers
– Suppliers of Telekom Anatolia in the sector have low bargaining power. Privatization of Anatolia National Telekom: ANT Confidential Instructions has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Telekom Anatolia to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Telekom Anatolia is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Michael D. Watkins, Banu Ozcan, Burkhard Schrage, Paul Vaaler can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Learning organization
- Telekom Anatolia is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Telekom Anatolia is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Privatization of Anatolia National Telekom: ANT Confidential Instructions Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Privatization of Anatolia National Telekom: ANT Confidential Instructions | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Privatization of Anatolia National Telekom: ANT Confidential Instructions are -
Skills based hiring
– The stress on hiring functional specialists at Telekom Anatolia has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Need for greater diversity
– Telekom Anatolia has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Privatization of Anatolia National Telekom: ANT Confidential Instructions HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Telekom Anatolia has relatively successful track record of launching new products.
Slow to strategic competitive environment developments
– As Privatization of Anatolia National Telekom: ANT Confidential Instructions HBR case study mentions - Telekom Anatolia takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Capital Spending Reduction
– Even during the low interest decade, Telekom Anatolia has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Increasing silos among functional specialists
– The organizational structure of Telekom Anatolia is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Telekom Anatolia needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Telekom Anatolia to focus more on services rather than just following the product oriented approach.
Lack of clear differentiation of Telekom Anatolia products
– To increase the profitability and margins on the products, Telekom Anatolia needs to provide more differentiated products than what it is currently offering in the marketplace.
High bargaining power of channel partners
– Because of the regulatory requirements, Michael D. Watkins, Banu Ozcan, Burkhard Schrage, Paul Vaaler suggests that, Telekom Anatolia is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Products dominated business model
– Even though Telekom Anatolia has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Privatization of Anatolia National Telekom: ANT Confidential Instructions should strive to include more intangible value offerings along with its core products and services.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Privatization of Anatolia National Telekom: ANT Confidential Instructions, is just above the industry average. Telekom Anatolia needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Workers concerns about automation
– As automation is fast increasing in the segment, Telekom Anatolia needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Opportunities Privatization of Anatolia National Telekom: ANT Confidential Instructions | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Privatization of Anatolia National Telekom: ANT Confidential Instructions are -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Telekom Anatolia can use these opportunities to build new business models that can help the communities that Telekom Anatolia operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Telekom Anatolia is facing challenges because of the dominance of functional experts in the organization. Privatization of Anatolia National Telekom: ANT Confidential Instructions case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Telekom Anatolia can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Telekom Anatolia can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Telekom Anatolia can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Creating value in data economy
– The success of analytics program of Telekom Anatolia has opened avenues for new revenue streams for the organization in the industry. This can help Telekom Anatolia to build a more holistic ecosystem as suggested in the Privatization of Anatolia National Telekom: ANT Confidential Instructions case study. Telekom Anatolia can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Learning at scale
– Online learning technologies has now opened space for Telekom Anatolia to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Telekom Anatolia can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Manufacturing automation
– Telekom Anatolia can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Better consumer reach
– The expansion of the 5G network will help Telekom Anatolia to increase its market reach. Telekom Anatolia will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Low interest rates
– Even though inflation is raising its head in most developed economies, Telekom Anatolia can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Leveraging digital technologies
– Telekom Anatolia can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Telekom Anatolia can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Telekom Anatolia can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Privatization of Anatolia National Telekom: ANT Confidential Instructions, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats Privatization of Anatolia National Telekom: ANT Confidential Instructions External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Privatization of Anatolia National Telekom: ANT Confidential Instructions are -
Technology acceleration in Forth Industrial Revolution
– Telekom Anatolia has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Telekom Anatolia needs to keep up with the evolution of technology in the Strategy & Execution sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Telekom Anatolia with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Telekom Anatolia in the Strategy & Execution industry. The Strategy & Execution industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Privatization of Anatolia National Telekom: ANT Confidential Instructions, Telekom Anatolia may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
Environmental challenges
– Telekom Anatolia needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Telekom Anatolia can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Consumer confidence and its impact on Telekom Anatolia demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Shortening product life cycle
– it is one of the major threat that Telekom Anatolia is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Telekom Anatolia.
Regulatory challenges
– Telekom Anatolia needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Strategy & Execution industry regulations.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Telekom Anatolia in the Strategy & Execution sector and impact the bottomline of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Telekom Anatolia can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Privatization of Anatolia National Telekom: ANT Confidential Instructions .
High dependence on third party suppliers
– Telekom Anatolia high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Weighted SWOT Analysis of Privatization of Anatolia National Telekom: ANT Confidential Instructions Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Privatization of Anatolia National Telekom: ANT Confidential Instructions needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Privatization of Anatolia National Telekom: ANT Confidential Instructions is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Privatization of Anatolia National Telekom: ANT Confidential Instructions is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Privatization of Anatolia National Telekom: ANT Confidential Instructions is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Telekom Anatolia needs to make to build a sustainable competitive advantage.
